I am performing a Hausman test to decide whether to use fixed effects or random effects model. The results I get are as follows:
. hausman random fixed
---- Coefficients ----
| (b) (B) (b-B) sqrt(diag(V_b-V_B))
| random fixed Difference S.E.
-------------+----------------------------------------------------------------
opm | .0375723 .0128309 .0247414 .0029346
tadiv10m | .0000558 .0000532 2.67e-06 .0000101
auditcomm | .0765687 .0572845 .0192842 .0087329
nplsgrossl~n | .2700572 .0569666 .2130906 .0193822
govauditor | -.0628177 -.040186 -.0226318 .0042376
------------------------------------------------------------------------------
b = consistent under Ho and Ha; obtained from xtreg
B = inconsistent under Ha, efficient under Ho; obtained from xtreg
Test: Ho: difference in coefficients not systematic
chi2(5) = (b-B)'[(V_b-V_B)^(-1)](b-B)
= 341.23
Prob>chi2 = 0.0000
and
. hausman fixed ., sigmamore
Note: the rank of the differenced variance matrix (4) does not equal the number of coefficients being tested (5);
be sure this is what you expect, or there may be problems computing the test. Examine the output of your
estimators for anything unexpected and possibly consider scaling your variables so that the coefficients
are on a similar scale.
---- Coefficients ----
| (b) (B) (b-B) sqrt(diag(V_b-V_B))
| fixed . Difference S.E.
-------------+----------------------------------------------------------------
opm | .0128309 .0375723 -.0247414 .0010828
tadiv10m | .0000532 .0000558 -2.67e-06 4.60e-07
auditcomm | .0572845 .0765687 -.0192842 .0008345
nplsgrossl~n | .0569666 .2700572 -.2130906 .0091677
govauditor | -.040186 -.0628177 .0226318 .0010184
------------------------------------------------------------------------------
b = consistent under Ho and Ha; obtained from xtreg
B = inconsistent under Ha, efficient under Ho; obtained from xtreg
Test: Ho: difference in coefficients not systematic
chi2(4) = (b-B)'[(V_b-V_B)^(-1)](b-B)
= 621.45
Prob>chi2 = 0.0000
How do I go about interpreting the results?